Ford CEO Jim Farley recently addressed the challenges of fully electric large SUVs and trucks during Ford’s Q4 2024 earnings call. Farley emphasized that the economics of electric utilities for larger vehicles are difficult to resolve due to their demanding use cases. These vehicles are often used for towing, off-roading, and long road trips, which require large and expensive batteries.
In the current market, electric pickup trucks from manufacturers like Tesla and General Motors come with a hefty price tag. For example, the 2025 Chevy Silverado EV starts at around $70,000, the Tesla Cybertruck at $79,990, and the GMC Sierra EV at $92,000. Additionally, these vehicles have massive battery packs and poor real-world efficiency, making them less appealing to consumers.
Despite the hype surrounding electric pickups, sales have not met expectations. The Tesla Cybertruck, which was expected to have over a million reservations, only sold 38,965 units in 2024. Ford’s F-150 Lightning sales grew year-over-year but still lagged behind gas-powered pickups.
Farley highlighted the challenges of selling large EVs to retail customers, citing their reluctance to pay a premium for these vehicles. Instead, Ford is focusing on plug-in hybrid electric vehicles (PHEVs), hybrids, and extended-range electric vehicles (EREVs) for profitability. These vehicles offer over 700 miles of range on a single tank of gas while driving mostly on electric power.
Looking ahead, Ford is exploring EREVs for its large SUVs and trucks, which feature an electric powertrain with a gas-powered generator for backup. Farley emphasized that heavy-duty EVs make more sense for commercial customers who can charge their vehicles at depots and have specific use cases.
In contrast, small and medium-sized trucks and SUVs are better suited for pure EVs as they require lower-cost batteries and cater to daily commuters. Ford is currently developing its next generation of vehicles that are expected to be affordable, high volume, and profitable for the company.
Overall, Ford’s strategy underscores the importance of adapting to market demands and focusing on vehicles that offer practical solutions for consumers. By prioritizing affordability, efficiency, and specific use cases, Ford aims to stay competitive in the evolving automotive landscape.